LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » World News

Boeing shares hit record after cost cuts lift second-quarter profit

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Updated: Wed, Jul 26, 2017
08:09 pm
Reuters

Boeing Co shares soared more than 8 percent to a record high after the world`s biggest plane maker posted second-quarter profit and cash flow well ahead of Wall Street estimates and lifted its full-year forecasts, helped by aggressive cost cutting.

Boeing has cut spending by streamlining production, reducing payrolls and winding down development costs, which has dramatically improved profit and cash flow. Its 787 Dreamliner contributed about $530 million in cash in the quarter, the second-largest amount in the history of the program.

Boeing shares jumped 8.2 percent to $229.89 in early trading. The stock has soared 37 percent this year.

The company`s cash from operations, at nearly $5 billion in the quarter, was roughly double estimates of about $2.5 billion.

"Monster cash flow," said analyst Robert Stallard at Vertical Research. The results were "about as close to perfect as it gets from Boeing," he added.

Military aircraft sales fell 4 percent to $6.8 billion, but profit jumped 50 percent and margins widened 4.6 percentage points, another sign of cost-cutting.

Boeing now needs to keep speeding up production of 737s and stay on schedule with 787-9 and 787-10 production and the transition to the 777X, a replacement for its 777 jetliner, said Ken Herbert, an analyst at Canaccord Genuity.

The extra cash allowed Boeing to add $1.5 billion to its 2017 operating cash flow forecast, now about $12.25 billion. Boeing will increase share buybacks this year by $3.5 billion, to about $10 billion. And it will make $3.5 billion in additional pension contributions this year to reduce future costs.

Boeing said it will cut full-year capital expenditure by $300 million, but that was expected since the company has made most of the big investments in its 777X wing factory and the 737 MAX and 787-10 programs, said analyst Richard Aboulafia at Teal Group.

The company lifted its full-year forecast for core earnings, which exclude some pension costs, by 75 cents to between $11.10 and $11.30 a share, its second upward revision this year.

Boeing swung to a profit of $1.76 billion, or $2.89 per share, in the second quarter, from a loss of $234 million, or 37 cents per share, a year earlier that reflected charges related to the 787, 747 and KC-46 tanker aircraft programs.

Core earnings, which excluded some pension and other costs, were $2.55 per share in the quarter.

Revenue fell 8.1 percent to $22.74 billion.

Analysts expected core earnings of $2.30 per share on revenue of $23 billion, according to Thomson Reuters I/B/E/S.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

Delhi schools reopen for Classes 10, 12 from today | From parents' consent to short class hours, all mandatory Covid 19 guidelines students must know

Amazon Prime Video served summons over 'Tandav' - Here is why

Market Guru Anil Singhvi analyses current bull trend, reveals Nifty, Bank Nifty levels for traders

PUBG Mobile India launch tomorrow? Check trailer and other reports and latest updates

ICICI Securities' Nifty target is 16300 over 12-18 month period

Zero fee, no hidden charge on UPI payments to merchants! Encouraging MSMEs, small businesses to adopt digital payments

Piramal to takeover DHFL loans? Yes Bank, Canara Bank, Union Bank of India may benefit | Jefferies Highlights

IRFC IPO Review: ICICI Securities on Indian Railway Finance Corporation issue

Anil Singhvi’s Strategy January 18: 14,150-14,200 & 31,725-31,800 is most strong support levels for Nifty & Bank Nifty

Income Tax Refund Status: Yet to get credit after seven days of ITR filing? Check for these common mistakes

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved